In: Accounting
BANK RECONCILIATION
B. J. Nebb deposits all receipts in the bank on the day they are received and makes all payments by check. One June 30, the Ledger Balance of Cash is $2,519 after all posting is completed. The bank statement dated June 30 shows a balance of $2,758. You are given the following information to prepare a bank reconciliation in the spaces provided below.
Remember correct placement of the dollar sign. This counts toward your grade!
Underline is already done, double underline cannot be done.
1.
Bank Statement Balance |
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Add: |
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Deduct: |
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Adjusted Bank Statement Balance |
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Ledger Balance of Cash |
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Add: |
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Deduct: |
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Adjusted Ledger Balance of Cash |
JOURNAL ENTRIES PERTAINING TO BANK RECONCILIATION
2. Using the information from the bank reconciliation in the previous question, journalize the necessary entries. Omit explanations.
Any amounts that should be blank must have a zero (0)!
Description |
Debit |
Credit |
3. Established a petty cash fund, $165.
Any amounts that should be blank must have a zero (0)!
Description |
Debit |
Credit |
4. The cash register tape indicates $1,359 as income from services rendered. The cash count, including the $100 change fund, is $1,461.
Any amounts that should be blank must have a zero (0)!
Description |
Debit |
Credit |
5. Reimbursed the petty cash fund for the following expenditures of $38 for deliveries and $20 for miscellaneous expenses.
Any amounts that should be blank must have a zero (0)!
Description |
Debit |
Credit |
1 | Bank statement balance | $2,758.00 | |
Add | Deposit in night depositry | $482.00 | |
Less | Outstanding checks | -$355.00 | |
Adjusted Bank statement balance | $2,885.00 | ||
Ledger balance of cash | $2,519.00 | ||
Add | Note collected | $458.00 | |
Less | Bank service charge | -$12.00 | |
Less | NSF check returned | -$80.00 | |
Adjusted cash balance | $2,885.00 |
2 | Journal | debit | credit | |
i | Cash | $458.00 | ||
Note receivable | $430.00 | |||
Interest on notes receivable | $28.00 | |||
ii | Bank serveice charges | $12.00 | ||
Cash | $12.00 | |||
iii | C. Elmer Account / Accounts receivable | $ 80.00 | ||
cash | $ 80.00 | |||
3 | Petty cash | $ 165.00 | ||
Cash | $ 165.00 | |||
4 | Cash | $ 1,362.00 | ||
Revenue/ Income | $ 1,359.00 | |||
Cash short and over | $ 3.00 | |||
5 | Delivery expense | $ 38.00 | ||
Moscellaneous expense | $ 20.00 | |||
Cash | $ 58.00 |
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